Zacks Investment Research Upgrades Compass Diversified (NYSE:CODI) to “Buy”

Compass Diversified (NYSE:CODI) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Tuesday, Zacks.com reports. The firm currently has a $29.00 price target on the financial services provider’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 10.98% from the stock’s current price.

According to Zacks, “COMPASS DIVERSIFIED was formed to acquire and manage a group of middle market businesses that are headquartered in North America. CODI provides public investors with an opportunity to participate in the ownership and growth of companies which have historically been owned by private equity firms, wealthy individuals or families. CODI’s disciplined approach to its target market provides opportunities to methodically purchase attractive businesses at values that are accretive to its shareholders. For sellers of businesses, CODI’s unique structure allows CODI to acquire businesses efficiently with no financing contingencies and, following acquisition, to provide its companies with substantial access to growth capital. “

Separately, TheStreet raised Compass Diversified from a “c+” rating to a “b” rating in a research note on Friday, February 26th.

CODI traded up $0.43 during midday trading on Tuesday, hitting $26.13. The stock had a trading volume of 137,754 shares, compared to its average volume of 179,280. The company has a market cap of $1.70 billion, a P/E ratio of -53.33 and a beta of 1.77. The business has a fifty day moving average of $24.27 and a 200 day moving average of $21.51. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.61 and a current ratio of 2.82. Compass Diversified has a 1 year low of $14.58 and a 1 year high of $26.25.

Compass Diversified (NYSE:CODI) last posted its quarterly earnings data on Tuesday, February 23rd. The financial services provider reported $0.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.37 by $0.18. The business had revenue of $474.78 million during the quarter, compared to the consensus estimate of $431.45 million. Compass Diversified had a positive return on equity of 12.05% and a negative net margin of 1.23%. On average, equities research analysts anticipate that Compass Diversified will post 1.55 earnings per share for the current year.

In other news, major shareholder Anholt Investments Ltd. sold 21,986 shares of the business’s stock in a transaction dated Tuesday, March 9th. The stock was sold at an average price of $24.08, for a total value of $529,422.88. Also, insider Ryan J. Faulkingham acquired 4,000 shares of the stock in a transaction dated Tuesday, March 16th. The stock was acquired at an average price of $23.61 per share, for a total transaction of $94,440.00. Following the completion of the transaction, the insider now directly owns 19,400 shares of the company’s stock, valued at $458,034. The disclosure for this purchase can be found here. In the last three months, insiders sold 50,685 shares of company stock worth $1,219,324. 2.70% of the stock is owned by corporate insiders.

Institutional investors have recently made changes to their positions in the company. Schroder Investment Management Group lifted its position in shares of Compass Diversified by 7.4% in the fourth quarter. Schroder Investment Management Group now owns 1,424,329 shares of the financial services provider’s stock worth $27,703,000 after buying an additional 97,537 shares in the last quarter. Royce & Associates LP boosted its stake in Compass Diversified by 3.3% during the fourth quarter. Royce & Associates LP now owns 730,844 shares of the financial services provider’s stock valued at $14,215,000 after buying an additional 23,577 shares during the last quarter. Morgan Stanley boosted its stake in Compass Diversified by 21.3% during the fourth quarter. Morgan Stanley now owns 658,474 shares of the financial services provider’s stock valued at $12,808,000 after buying an additional 115,527 shares during the last quarter. Gilman Hill Asset Management LLC boosted its stake in Compass Diversified by 0.9% during the fourth quarter. Gilman Hill Asset Management LLC now owns 304,838 shares of the financial services provider’s stock valued at $5,929,000 after buying an additional 2,598 shares during the last quarter. Finally, North Star Investment Management Corp. boosted its stake in Compass Diversified by 6.4% during the fourth quarter. North Star Investment Management Corp. now owns 236,326 shares of the financial services provider’s stock valued at $4,597,000 after buying an additional 14,310 shares during the last quarter. Institutional investors and hedge funds own 28.55% of the company’s stock.

Compass Diversified Company Profile

Compass Diversified is a private equity firm specializing in add on acquisitions, buyouts, industry consolidation, recapitalization, late stage and middle market investments. It seeks to invest in niche industrial or branded consumer companies, manufacturing, distribution, consumer products, business services sector, safety & security, electronic components, food, foodservice.

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